Is impact financing the vision for modern companies? How are employees involved in this process and how much power does volunteering have? What scope is there for measuring effectiveness? Is the concept of social responsibility tired today? Among others, these were the questions that Róbert Bolyán, Head of Social Impact Banking at UniCredit Bank Hungary, Antal Károlyi, investor and expert, and Levente Kovács, Senior Investment Manager at Hiventures, sought answers to during the roundtable discussion of the Focus on Impact project.
The concept of corporate social responsibility – or CSR – has become tired and ESG has become more popular as a new, complex set of values. ESG stands for Environmental, Social and Governance. A set of criteria that recommends taking environmental, social and governance issues into account when considering investments in companies.
Corporate social responsibility is an important element of impact financing. It is important to note, however, that it often exists in isolation from the core business of the company, when it would be more appropriate to manage it organically. Through volunteering and grassroots activities, the success of investments can be increased.The impact investing investment approach focuses on solving economic problems, promoting economic development and having a positive impact on society and the environment. A key element of impact financing is strengthening partnerships between companies, governments, non-profit organisations and investors to achieve common goals. It is important for investors, companies and policy makers to understand best practices and methods for influencing impact. Awareness raising and training helps to achieve broader engagement and more effective impact. Accountability plays a key role in ensuring the sustainability of impact financing, which can increase the effectiveness and popularity of the investment.
